After selling 832 BTC to clear debt, this Nasdaq-listed crypto firm is using a 1-for-50 reverse split to mask its shrinking treasury
Bitcoin monetary providers firm Fold may tackle its Nasdaq share-price drawback via a potential reverse split, however the firm’s shrinking Bitcoin reserve raises a separate query about the way it will fund operations.
The firm’s Aug. 11 quarterly filing reported that, as of June 30, Fold held 194 BTC price $11.4 million in its funding treasury after selling 832 BTC through the six months ended June 30.
On that very same date, it held one other 77 BTC price $4.5 million in a rewards treasury, however that stability was matched to a Bitcoin-denominated buyer rewards legal responsibility. The mixed complete was 271 BTC, although the 2 buckets weren’t economically interchangeable.
A reverse inventory split may elevate Fold’s nominal share value with out elevating money, issuing new shares, or consuming Bitcoin. That may assist the corporate regain Nasdaq compliance, however it could not pay working bills. Fold reported a $15.6 million working loss for the primary six months of 2026, making dilution and additional use of the funding treasury potential financing dangers, not needed outcomes.
Debt cleanup left a smaller treasury
Fold bought 200 BTC for $14.4 million in February and 632 BTC for $44.7 million in June. It used $20 million of the June proceeds to repay its Bitcoin-backed credit score facility and retained the remaining $24.7 million as money.
Those gross sales had been separate from the return of 500 BTC to an investor when an earlier notice was extinguished. That switch didn’t generate sale proceeds and is not a part of the 832 BTC bought through the half.
Fold reported $28.4 million in money and money equivalents at June 30. The firm additionally raised extra liquidity by selling about 5.82 million shares for $7.5 million below its fairness facility through the first half. Fold has not mentioned how it could cowl future money wants with out returning to inventory gross sales or using extra of the funding treasury.
Nasdaq notified Fold on July 14 that its shares had closed beneath the trade’s $1 minimal for 30 consecutive enterprise days. The discover had no instant impact on the itemizing and gave Fold an preliminary remedy interval via Jan. 11, 2027.
To regain compliance, Fold’s shares should shut at or above $1 for not less than 10 consecutive enterprise days, or longer if Nasdaq requires. The firm could qualify for one more 180-day interval if it meets the trade’s different circumstances.
Fold is searching for shareholder authority for a reverse split starting from 1-for-2 to 1-for-50. Its submitting doesn’t say that a ratio has been chosen or that a split has been carried out. If Fold makes use of that authority, the maneuver may tackle the bid-price requirement with out altering the corporate’s underlying money place.
The draw back threat stays conditional. Under Fold’s February investor-note terms, an precise failure to preserve its Nasdaq itemizing would represent an occasion of default on the $13 million notice. The present deficiency discover is not a delisting and didn’t itself set off that provision.
Fold may due to this fact restore compliance with out selling Bitcoin or elevating fairness if its inventory recovers or a reverse split takes impact. What stays unanswered is how the corporate will fund persevering with operations whereas defending the 194 BTC it reported in its funding treasury as of June 30.
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